The YFII price crashed over 70% on 25 May, before a bounce – YFII investors are wondering if further downside is on the cards, or if a reversal is possible from here.
Binance, where YFII is listed, now displays a risk warning for the YFII coin – ‘the price of this token is subject to high volatility’. Traders are required to accept that message before they can buy YFII on the USDT or BTC pair.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
Why Did YFII Crash?
Investors who got into DFI Money (written DFI.Money, with the ticker symbol YFII) in mid-2021 watched the coin pump around 400% until the end of August 2021. Then YFII retraced and has been in a downtrend since, setting new lows in May 2022, even before today’s flash crash.
The latest drop in the YFII price happened on 25 May 2022 – measured from the daily high of $1,227 to the daily low of $312, it dropped 74% in total.
Most of that crash took place within the space of an hour – since then the DFI.Money (YFII) price bounced to $940, and is currently trading at around $700 – $750.
Update – the daily candle opened the next day, 26 May at $755.
YFII Delisted on Binance Futures
Binance announced in April 2022 that it would delist YFII / USDT margined contracts. That announcement scared the market, resulting in the price dropping from $2,300 to $1,189.
The team behind DFI.Money had promised investors a huge annual percentage yield (APY). Some believe that YFII investors are victims of a rug-pull – attracting investors with a high yield then pulling out and abandoning the project.
The cause of the crash is still unclear, especially as the price has significantly recovered since the latest drop – an almost 300% bounce at one point, so some buyers are interested at these levels.
DFI.Money Technical Analysis
At the beginning of May 2022, YFII broke through key support that it had held for months. The price broke through the $1,500 region and continued dropping to $860 before a reversal to the upside.
That bounce saw the price retest YFII’s new resistance, failing to break through it. YFII failed to find support and a shooting star candle formed on the daily chart when the price was rejected at the $1,500 level for a second time on 15 May.
YFII’s inability to reclaim that level and the bearish candle signalled that further downside was possible. The latest price drop saw YFII drop from $1,200 to $330 in an hour. Then it recovered in the subsequent few hours. Short positions could’ve closed, or buyers could be stepping in to buy the dip.
Buying DeFi coins or any altcoins during periods of high volatility in the market is risky.
The crypto market is prone to such volatility, and some investors will be waiting on the sidelines to find out the real reason for the crash. Was the volatility to shake out the weak hands, or are the rumours about a rug-pull true?
What is DFI.Money?
The Yearn.Finance (YFI) platform enables users to deposit and stake ERC-20 tokens to receive daily interest.
It allocates capital to the most-rewarded staking pools in the network. YFI’s fork is YFII—a DeFi platform that builds products on leveraged trading.
YFII is an Ethereum token, governing the DFI.Money platform and acts as a yield optimiser for tokens deposited on the platform.
DeFi Coin (DEFC) - Undervalued Project
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